TEMPO/Indonesia Not Expecting Much from US Investments

TEMPO Interactive, Jakarta:The Investment Coordinating Board (BKPM) chairman, Gita Wirjawan confirmed that US President Barack Hussein Obama’s visit to Indonesia next week would have brought a positive signal for Indonesia’s investment development. “But this does not mean we are prioritizing investment from the US,” Gita said in Jakarta yesterday.

According to Gita, investments are not only expected from the United States, but also from India, the Middle East, Japan, and ASEAN countries. Obama’s visit, which has been postponed until June, will not necessarily relate with investments.

The BKPM and the Overseas Private Investors Corporation’s (OPIC) plan to sign an MoU facilitating investment possibilities. OPIC is a US government-owned enterprise providing insurance for US businesses investing overseas, including in Indonesia. The discussion is currently in the final negotiation stage and is waiting to be signed. “This is not yet an investment,” Gita said.

Gita added that there were different agendas, for instance in the trade and education sectors, regarding Obama’s visit to Indonesia. “You better ask this directly to related ministries, like the Foreign Affairs Ministry,” he said.

Following the coordination meeting regarding the Korea Joint Task Force on Wednesday, Coordinating Minister for the Economy Hatta Rajasa said some US' investment plans in Indonesia are now ongoing, especially in the oil and gas as well as the transportation sectors, such as cooperation with GE Locomotive and with Indonesian counterparts.